Secretary of Defense Leon E. Panetta, in his office at the Pentagon on Friday, spoke about reducing the military's budget. Doug Mills/The New York TimesWeighing Pentagon Cuts, Panetta Faces Deep Pressures -- New York Times
WASHINGTON — Under orders to cut the Pentagon budget by more than $450 billion over the next decade, Defense Secretary Leon E. Panetta is considering reductions in spending categories once thought sacrosanct, especially in medical and retirement benefits, as well as further shrinking the number of troops and reducing new weapons purchases.
Mr. Panetta, a former White House budget chief, acknowledged in an interview that he faced deep political pressures as he weighed cuts to Pentagon spending, which has doubled to $700 billion a year since the terrorist attacks of Sept. 11, 2001. He said that meeting deficit-reduction targets might require another round of base closings, which could be highly contentious as members of Congress routinely fight to protect military deployments and jobs in their communities.
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Update: Report: Pentagon Weighing Base Closures, Military Benefits in Face of Budget Cuts -- National Journal
My Comment: I am very skeptical that Congress has the will-power to drastically cut the US defense budget .... especially those items that are perceived as sacrosanct (i.e. pensions and medical benefits). But with trillion dollar deficits .... I do not see how this can be avoided.